New Section 13 of Article XII to provide as follows
§ 13 Prohibition on Special Benefits for Retail Projects
(a) Statement of Intention. The city is authorized by Tex. Loc. Gov't. Code Chapter 380, and other applicable law to enter into economic development agreements to encourage or foster economic growth. Notwithstanding the foregoing, it is the intention of this Charter provision to restrict the use or expenditure of tax revenues or other resources of the city to provide subsidies, financial benefits or advantages for development of real property that includes one or more Retail Uses. It is the intention of this Charter provision to ensure fair and equal treatment as between operators of Retail Uses, and particularly to ensure that small retail businesses are not disadvantaged by subsidies and financial benefits given by the city to competing Retail Uses.
(b) Restriction. The city shall neither provide nor enter into an agreement to provide any Financial Incentive in connection with the development or re-development of any real property that includes one or more Retail Uses.
(c) Applicability. Upon adoption of this Section 13, the restriction provided in this Section 13 shall apply to any pending agreement for the payment of a Financial Incentive by the city in connection with any Retail Use if such agreement provides that the obligation to pay a Financial Incentive pursuant to such agreement is contingent on or subject to the city's appropriation of funds for the payment of the Financial Incentive.
(d) Definitions. As used in this Section 13, the following terms shall have the following meanings:
(1) "Financial Incentive" means: (i) any payment or rebate of any general or special sales tax or ad valorem tax, whether assessed against property proposed to be developed or re-developed or attributed to taxable activity on such property; (ii) the construction, at the expense of the city, of street, utility, drainage, or other infrastructure improvements or amenities that directly serve a new development or re-development; (iii) a donation of an interest in real property owned by the city; (iv) a special right of use, without fair compensation therefor, of any park land or undeveloped land owned by the city that is a right or use not provided for the benefit of all property located in the city; (v) forgiveness or discharge of a loan or any part of a loan; or (vi) a grant of funds.
Notwithstanding the foregoing, the following shall not constitute a Financial Incentive: (i) cost participation by the city in constructing street or utility improvements (as, for example, oversizing of utility improvements to accommodate future development) consistent with generally applicable city policies and practices, provided that the developer's or owner's share of such costs fairly and reasonably approximates the cost of construction of such improvements suitable to serve the improvements and uses intended by the developer or owner of a Retail Use benefited thereby; (ii) a grant or loan to a small business, whose principal office is in Austin, Texas, pursuant to a generally applicable small business loan program; (iii) an expenditure of funds (other than a tax abatement) pursuant to the Tax Increment Financing Act, Tex. Tax Code Chapter 311 or tax increment financing effected pursuant to Tex. Loc. Gov't Code Chapter 374, as amended from time to time
(2) "Retail Use" and "Retail Uses" shall mean the use or proposed use of improvements to real property for the sale directly to the public of any commercial or consumer goods, including but not limited to the sale directly to the public of clothing, appliances, jewelry, furniture, pets, building materials, plants, drugs and personal hygiene goods, home accessories, household items, professional services, packaged or prepared food and beverages, recorded music, office supplies, and any other goods sold directly to the public. "Retail Uses" shall not include a wholesale or distribution center or manufacturing or assembly facility in which goods are stored, assembled, or manufactured, for transport off-site for later sale; daycare services; medical facilities; any enterprise operated by a non-profit corporation; public or private educational facilities; performing arts venues; or museums.
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